Wednesday 16 November 2011

Apple upgrades hint Cupertino's plans for television

Apple's [AAPL] plans for television are moving forward slowly as new iOS 5 and iCloud features hit the Apple TV, and Cupertino meets with Hollywood to agree new movie streaming deals.

Reflect on this
The company quietly upgraded the Apple TV software yesterday. Meanwhile analysts and leaders from the gaming and the entertainment spaces are predicting Apple plans a serious push at the front room.
"It's the big area they haven’t colonized," said James McQuivey, an analyst at Forrester Research. "It's the thing we spend more of our time on than sleep."
What's so great about the update?

AirPlay video mirroring is a big deal. It was already possible to stream audio and video content to the Apple TV from an iOS device using AirPlay, but now you can mirror the entire screen of the iPad 2 on the TV connected to the Apple TV. Play games, watch things, surf the 'Net. Just one box required.
Game on
Interestingly, Apple's move to take on Nintendo in the console gaming space has been previously noted, but now it seems the strategy is closing in on reality. According to the Seattle Times, Valve CEO Gabe Newell said:
"The living room is the domain of the consoles, and its ability to exist independently from the other platforms is gone,"
He is anticipating a new product that will challenge consoles. "I suspect Apple will launch a living room product that redefines people's expectations really strongly and the notion of a separate console platform will disappear," he said.
With iOS 5 and Apple TV, is the company already in position to achieve this?
Breaking broadcasting
What else does the Apple TV update add? Photostream support the ability to watch movie trailers and live streaming of NHL hockey games in the US. You also gain support for subtitles in Netflix, new slideshow themes and free access to news, comment and analysis from the Wall Street Journal.
Of course, integration of support for iCloud is the biggest deal. You can already stream content from your iTunes collection as held on your domestic computer system: but, when iTunes Match launches later in the year, it will be interesting to see if you need a computer at all.. what could this imply?
  • If you no longer need a computer, just how much of a future does Apple plan for the front room based on iOS 5?
  • Will the company eventually launch full music and movie subscription streaming services (see below)?
  • If the company intensifies its invasion of the living room, at which point will creating an Apple-branded television set make sense?
  • Will an A5-powered Apple TV, or Apple-branded television, enable remote interrogation, set-up and show purchase/recording using the truly interesting Siri intelligent assistant?
  • Will your voice become the ultimate remote control?
Apple goes Hollywood
It isn't the first time we've speculated on Apple's plans to launch movie streaming services.
The company has been rumored to be investigating such a plan since it acquired lala.com. It now appears negotiations to get movies onto iCloud streaming services are intensifying, with Apple negotiating with Hollywood studios for licenses to do just that. (Apple in August ended its 99-cent TV show rental scheme because consumers preferred purchasing TV shows.)
These negotiations seem to be reaching critical stages, with Apple representatives and studios meeting to "finalize" deals to allow such services, according to the LA Times and Wall Street Journal.
Apparently, part of the implementation will let users stream movies to their devices -- you won't need to manually transfer those large, space-taking files.
These services could apparently launch before the end of the year, or early in 2012. Given that previous speculation has suggested a 2012 launch point for an Apple--branded television, could Apple be plotting to take its "hobby" product into the mainstream?
2012: Apple takes the den
Piper Jaffray analyst, Gene Munster says, "We believe Apple may add movies and TV shows purchased or rented in iTunes to the iCloud service, which could be viewed on a TV."
Right now, of course, those games you play on your iPad or iPhone can be mirrored to your TV, as can your presentations, spreadsheets, Safari pages -- anything on your screen can now be mirrored on your TV.
That will not be where this story ends. In the opinion of your humble blogger, Apple is close to the point when it will reinvent television.
What are your thoughts? What does TV need? What doesn't it need? And how can Apple disrupt the industry? Do let me know in comments below, and I'd be ever so pleased if you chose to follow me on Twitter so I'm able to let you know as new reports get published here first on Computerworld. 

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